|
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| INDUSTRY Nano to have permanent home in Pantnagar, too As South turns frugal, rural North drives car sales INTERVIEWS/FEATURES CARS, SUVs, MUVs Maruti launches mascot for WagonR Maruti plans to roll into carbon credit trade Skoda to assemble Yeti at Aurangabad plant COMMERCIAL VEHICLES Bajaj net zooms 67% to Rs 293 cr in first quarter Bajaj Auto: Betting on 100cc space COMPONENTS | ALLIED INDUSTRIES Re-plantation subsidy crunch to reduce rubber FINANCE & INSURANCE Add-ons okayed, car covers get more comprehensive OIL, LUBRICANTS & ALTERNATIVE FUELS INTERNATIONAL NEWS Porsche set to accept VW plan for merger Harley-Davidson slashes 1,000 jobs as profits skid ECONOMY & FINANCE Sensex ends flat amidst high volatility Inflation remains in negative territory
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PTI See this story in: The Tribune (Web Edition), Daily News & Analysis (Web Edition), Hindustan Times (Web & Print Edition), The Indian Express (Web Edition), The Telegraph (Web Edition), Asian Age (Web & Print Edition), The Times of India (Web & Print Edition), Business Standard (Web & Print Edition), mint (Web & Print Edition)
New Delhi: Five years after his promise to build a people's car, Ratan Tata will hand over the key of his dream project, the Nano, to its first customer tomorrow. From the birth of the dream in 2003, to its launch in 2008 and finally its delivery in 2009, the Nano's journey has been anything but smooth.
The car, first showcased at the Delhi Auto Expo last year, was at the centre of much controversy as its proposed plant site in West Bengal became a rallying point for Mamata Banerjee and her party to gain political mileage.
The controversy surrounding the site led Ratan Tata to abandon Singur and shift the Nano's production to Gujarat. But the overwhelming support for Tata's dream car was evident when the booking opened early this year. Despite the slowdown in the auto sector, the car attracted over 2.05 lakh bookings.
In the first lot over 1.55 lakh cars would be delivered and the first one lakh will be sold at the announcement price of Rs 1 lakh, making it the cheapest four-wheels in the world. Tata had earlier said that 'a promise is a promise' and keeping his promise he would hand over the first car tomorrow at the price-protected rate. http://www.tribuneindia.com/2009/20090717/biz.htm#4 http://www.hindustantimes.com/redir.aspx?ID=64fbdbc5-7a23-4e0b-b535-4ce48c527fbc http://www.indianexpress.com/news/tata-motors-to-deliver-first-nano-on-friday/490300/ http://www.telegraphindia.com/1090717/jsp/business/story_11247587.jsp http://business.rediff.com/report/2009/jul/16/tata-to-hand-over-first-nano-key.htm http://in.biz.yahoo.com/090716/137/batw9k.html http://www.livemint.com/2009/07/16155752/Tata-Motors-to-deliver-first-N.html
NANO TO HAVE PERMANENT HOME IN PANTNAGAR, TOO Shishir Prashant Business Standard (Web & Print Edition)
Dehradun: It is now official. Pantnagar would become a permanent home for Nano the Rs 1-lakh car from Tata Motors. A company spokesman confirmed that the auto major would continue to produce Nano cars from Pantnagar even after the commencement of production at the Sanand plant in Gujarat early next year.
This is our official position, that Nano would continue to be manufactured from Pantnagar even after the Sanand plant starts operation, the spokesman said. The Uttarakhand government had, so far, maintained that the auto giant had given a commitment to set up a permanent satellite plant at its Pantnagar facility for producing the ultra-cheap car.
We are happy that Tata Motors is going to manufacture Nano cars permanently from Pantnagar, Chief Secretary Indu Kumar Pande told Business Standard.
Tata Motors is planning to produce a total of 50,000 cars per year at the Pantnagar industrial unit, from where the company would launch the first car, Pande added. Tata Motors was given more than 1,000 acres at Pantnagar by the state government for setting up its manufacturing facility. In addition to this, the auto major has also agreed to distribute all its Nano cars from Pantnagar through its new subsidiary, Tata Motors Distribution Co Ltd.
Through the sale of Nano cars and other commercial vehicles, which are being manufactured at Pantnagar, the state government is hoping to earn an additional tax revenue of Rs 100-200 crore through VAT collections.
Last year, the company got 20 acres from the state government for the distribution company, as well as another 45 acres for expanding the industrial unit for the purpose of producing Nano cars. http://www.business-standard.com/india/news/nano-to-have-permanent-home-in-pantnagar-too/364172/
AS SOUTH TURNS FRUGAL, RURAL NORTH DRIVES CAR SALES Sumant Banerji
New Delhi: The southern region, hit by the slowdown in the IT sector and the export front, is getting less savvy on automobiles while the north, spurred by an abundant rural economy, is buying more cars.
The eastern region, not a happy hunting ground for the sector in terms of investment friendliness, has improved its market share across all segments in the vehicle sales cars, two and three wheelers, multi utility vehicles and commercial vehicles.
The north has always been a big market for cars, with Delhi and Punjab leading the list. The regions share in car sales has gone up to 34.4 per cent in 2008-09 from 33.3 per cent in 2007-08.
Sales in southern and western regions have dropped from 29.7 to 29 per cent and 28.9 to 27.7 per cent, respectively.
North is, however, the leader only in cars and it is the west zone, which calls the shots on two wheelers, while the south tops in commercial vehicle sales.
South also remains a big market for mopeds with 82 per cent share. It is also a big market for three wheelers with a 46.5 per cent share.
All segments put together, the western regions of the country tops the list in automobile sales with a 32 per cent share, followed by south at 30.96 per cent. The east remains the most sluggish market for almost all segments but has shown maximum improvement in the last one year. http://www.hindustantimes.com/StoryPage/StoryPage.aspx?sectionName=RSSFeed-Business&id=54d6e33d-87f9-476b-bfc5-f4d742173da2&Headline=As+South+turns+frugal%2c+rural+North+drives+car+sales
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| INTERVIEWS/FEATURES Go To Top Mumbai: Bajaj Autos plans to get into the small car segment may have to wait a little longer. The company, which is working with French carmaker Renault and Japanese major Nissan to develop an ultra-low-cost car (ULCC), now wants to tweak its plans to effectively compete with Indias market leader in small cars, Maruti Suzuki. Copyright 2008, Bennett, Coleman & Co. Ltd. All Rights Reserved" http://economictimes.indiatimes.com/News/News-By-Industry/Auto/Were-planning-a-different-strategy-for-small-cars/articleshow/4787289.cms
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| CARS, SUVs, MUVs Go To Top
New Delhi: The country's largest carmaker Maruti Suzuki said it has launched CNG kit for its highest selling small car Alto in the national capital region priced at Rs 43,545.
MARUTI LAUNCHES MASCOT FOR WAGONR PTI See this story in: The Economic Times (Web & Print Edition)
New Delhi: In a bid to revitalise its Wagon R brand, Maruti Suzuki India has launched a mascot 'Mr WizeR' to represent the model.
"The objective of launching 'Mr WizerR' is to revitalise the brand and beat the clutter with an innovative concept, while communicating the core strength of the brand in the most effective manner," MSI Chief General Manager (Marketing) Shashank Srivastava said in a statement.
MARUTI PLANS TO ROLL INTO CARBON CREDIT TRADE Danny Goodman Business Standard (Web & Print Edition)
New Delhi: We are examining the issue, a company executive at Indias largest car manufacturer said, while declining to specify which environment-friendly manufacturing processes at the companys two plants in Gurgaon and Manesar would help it generate the credits.
Tata Motors the largest vehicle manufacturing company by sales revenue is another vehicle manufacturer which has been trading carbon credits, or carbon emission reductions (CER), since 2007.
Currently, a handful of vehicle and auto parts manufacturers are involved in CER trading. In addition to Tata Motors, Bharat Forge, Bajaj Finserv and Apollo Tyres have been actively monetising their CERs. The total CERs generated so far by the domestic auto industry is about 3.77 lakh units, with an estimated value of Rs 18.5 crore.
A company generates CERs by implementing environment-friendly manufacturing processes that cuts the emission of greenhouse gases at the factory. These measures are designed to cut emission of gases like CO2, reduce consumption of energy, promote waste heat recovery, use renewable energy, implement effluent treatment systems at the factory, Dipankar Ghosh, partner, Ernst & Young, said.
In return for all these efforts, companies like Maruti get one carbon emission receipt, which is equal to not generating one tonne of carbon gas. One CER currently costs around 23 (Rs 1,572) and is expected to touch 37 (Rs 2,529) by 2012. Each credit could be auctioned to a polluting company, based either in the US or in the European Union, which needs these credits to comply with the stiff carbon emission limits that are prevalent in these regions.
Domestic automobile companies, including auto parts manufacturers, have earned carbon emission receipts primarily on the shop floor and by erecting windmills. Inside the factory, auto companies could cut down carbon emissions by reduced usage of electricity and fuel in all of their operations, Ghosh said.
Apollo Tyres, for instance, uses waste heat generated inside its production plant in Baroda for other manufacturing activities, thereby cutting usage of electricity. This qualifies the company for CERs.
In addition, we use waste steam generated by our neighbour, Gas Authority of India (GAIL), for our manufacturing process. For this, we hope to claim carbon emission credits in the future, Sunam Sarkar, CFO, Apollo Tyres Ltd, said. In 2006, the company sold about 39,000 units of CERs for Rs 3 crore.
The second largest forgings company in the world, Bharat Forge, minimises the usage of electricity by re-using heat generated in its forging plants. We have invested in other green technologies that will help us to reduce our carbon footprint on the planet. As a global organisation, we are deeply committed to sustainability, says Amit Kalyani, executive director. Every year, Bharat Forge and its subsidiary, BF Utilities, that operates windmills, generate about 35,000 units of CERs. For the financial year 200809 the company earned Rs 50 lakh by trading its CERs.
Tata Motors generated 1.67 lakh CERs between 20012007, primarily derived from its windmill projects in Maharashtra, which earned the company Rs 14.45 crore in the financial year 200708. For 200809, the company generated 0.27 lakh CERs. A spokesperson said the company was waiting for international carbon credit prices to firm up before it could auction its CERs.
Pune-based Bajaj Auto, through its subsidiary, Bajaj Finserv, that operates 138 windmills in Mahrashtra, earned 100,000 units of CERs for 200809.For every megawatt of electricity provided through a windmill, a company earns between 2,000 and 3,000 units of CERs. http://www.business-standard.com/india/news/maruti-plans-to-roll-into-carbon-credit-trade/364171/
SKODA TO ASSEMBLE YETI AT AURANGABAD PLANT PTI See this story in: mint (Web Edition)
New Delhi: Czech carmaker Skoda on Thursday said it will assemble its upcoming sports utility vehicle (SUV) Yeti at its Indian plant once it is commercially launched in the country next year.
SkodaAuto India, the wholly-owned Indian subsidiary, will showcase the SUV at the Auto Expo in the National Capital in January next year after its European launch in September this year.
Feasibility study of the car (Yeti) will be started within a few weeks and by the end of the year, we will be able to announce the date of launch. It is unlikely that it will be launched in this fiscal, but it will surely come in 2010, SkodaAuto India senior general manager (sales and network development) Ashutosh Dixit told the agency.
Before the commercial launch of Yeti in India, the car would be showcased in the upcoming Auto Expo in the National Capital in January next year, he added. Yeti was unveiled at the Geneva Motor Show this year and the vehicle is likely to be launched in the European markets in September in both petrol and diesel engines, Dixit said, adding for the Indian market, Yetis engine capacity would be decided after the completion of the feasibility study.
Asked whether the car would be manufactured in India, he said, It will be brought in as a completely-knocked-down (CKD) unit and will be assembled at our Aurangabad facility.
SkodaAuto India, which sold 16,188 units in 2008, is expecting to cross the last years figures, Dixit said.
This year we are expecting a promising second half, where growth will be more than the second half of last year, he said, adding the company has so far sold about 6,500 units this year.
When asked about the localisation level of components in its cars, Dixit said it is 10-15% on an average, but with group firms Volkswagen and Audi entering into the market, it is likely to go up in the future.
He, however, said SkodaAuto India would not leverage the after-sales service network of the group firms.
In Europe, we are utilising each others network at some places. But here as all the three brands are relatively new, the first challenge is to establish these in the minds of the customers. At the moment, we will operate independently, later we may leverage, he added.
Besides, the Volkswagen (VW) group company is also expanding its dealership network by 15 outlets by next year.
The market is recovering and we are witnessing buoyancy around our products. We will expand our dealerships to 75 outlets by 2010 from 61 at present, Dixit said. On the marketing front, he said the company is looking to sponsor out-of-the-way events such as Kerala Boat Race, art exhibitions, music concerts and various other cultural shows.
SkodaAuto produces luxury cars like Sedan, Octavia, Superb and Laura at its Aurangabad facility, while the premium hatchback Fabia is rolled out from the VWs Chakan plant. http://www.livemint.com/2009/07/16173128/Skoda-to-assemble-8217Yeti.html
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| COMMERCIAL VEHICLES Go To Top | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| CONSTRUCTION & AGRI MACHINERY Go To Top | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2/3 WHEELERS Go To Top BG Shirsat Business Standard
Mumbai: Automobile manufacturers are expected to post sequential growth in sales, operating margins and profit in the first quarter of 2009-10, driven by Hero Honda, Maruti Suzuki and Mahindra & Mahindra. But Ashok Leyland and Tata Motors are expected to show poor results in the commercial vehicle segment due to lack of demand. TVS Motors should also be showing a decline in sales on lower motorcycles volumes.
The sector is likely to post an 8-10 per cent rise in year-on-year net sales, driven by Hero Honda with a sales growth of 66 per cent. Maruti Suzuki expects to post a 28 per cent rise in sales on the back of a 134 per cent rise in exports from new launches. Mahindra & Mahindra should post a 20 per cent growth in sales on strong volume growth in utility vehicles and tractors.
Ashok Leyland is likely to show a 50 per cent decline in sales on poor volume from the passenger and goods vehicle segment. Tata Motors should post a double-digit decline in net sales due to a poor show from commercial and utility vehicles. Bajaj Auto, which has just declared its results, has maintained its turnover compared to the quarter a year earlier, on improved product mix, while TVS Suzuki expects to post a double-digit decline in sales on depleted motorcycle volumes.
Hero Honda and Mahindra are likely to outperform the sector with net profit growth of over 50 per cent each. The net profit of Maruti Suzuki is expected to be flat, due to pressure on operating margins. Tata Motors should show a decline in net profit by over 60 per cent, while Ashok Leyland should post a net loss due to higher interest cost. The auto analyst at Sharekhan Research indicates that the growth is augmented by new launches in the passenger car segment, with Maruti Suzuki leading from the front. These launches, such as Maruti Ritz, Honda Jazz and Fiat Grande Punto in the segment boosted the demand. The growth in the two-wheeler segment was also backed by new launches and upgradations like Pulsar 220 and Apache-RTR.
The aggregate net profit of automobile companies is expected to be flat due to Tata Motors and Ashok Leyland, but there will be a 100-150 basis points increase in operating margins due to the softening of raw material prices. Auto analysts expect strong margin expansion on a sequential basis across the space, as benefits of low input costs are expected to flow through for most players.
The auto analyst at Edelweiss Research expects Ashok Leylands average realisations to go up due to increase in share of revenues from non-vehicle segments. For the company, most of the gains of softening of commodity prices will be offset by the negative operating leverage. Tata Motors is expected to post a modest rise in operating margins, while the rise in interest burden due to funding for overseas acquisitions is likely to hurt its net profit.
Bajaj Auto had better operating margins due to soft aluminium prices and sttricted cost control. Hero Honda is expected to post a 50-100 basis points improvement in margins, as most of the benefits of soft input prices have already been noticed in the fourth quarter. http://www.business-standard.com/india/news/two-wheelers-utility-segment-to-prop-sales-in-q1/364170/
BAJAJ NET ZOOMS 67% TO RS 293 CR IN FIRST QUARTER Business Standard See this story in: The Financial Express, mint, The Times of India, The Hindu Business Line, The Indian Express, The Hindu, The Pioneer, Yahoo India, Hindustan Times
Mumbai: Stricter cost control measures by Pune-based Bajaj Auto helped it post a growth of 67 per cent in net profit at Rs 293 crore for the first quarter ended June 30.
High margins from its Pulsar range of bikes, which were only recently given a face-lift, further pushed the bottomline of Indias second-biggest motorcycle maker when compared with the net profit of Rs 175 crore posted by it in the same quarter of the previous year.
The Pulsar range contributes to nearly half of the companys average domestic sales. The growth in profit is despite a drop in absolute sales by nearly 12 per cent, which stood at 547,662 units as compared with 620,095 units during the two comparable periods. The company has signed multiple supply contracts with raw material providers, which has enabled it to keep costs under control. The agreements are valid for the current as well as next two quarters, stated a senior executive.
Total expenses dipped by nearly 8 per cent during the quarter, to Rs 1,916 crore as compared with Rs 2,071 crore reported in the same quarter in the previous year. Ravi Kumar, vice-president (business development), said: Cost of raw material had dipped significantly recently and are at comfortable levels currently. Such high margins will not be sustainable over the next few quarters, but better cost management will certainly help improve matters.
Earnings before interest, tax, depreciation and amortisation (Ebitda) of Rs 445 crore as against Rs 262 crore is the best the company has reported ever, claimed the official. Ebitda margins rose to 19.5 per cent, as compared with 11.6 per cent recorded in the corresponding quarter a year earlier.
Net sales grew marginally by 1.55 per cent to Rs 2,259 crore in the same quarter, as against Rs 2,224.4 crore in the corresponding quarter a year before.
Additionally, a rise of 5.5 per cent in the valuation of rupee against the dollar improved earnings from vehicle exports. The company showed a gain of Rs 21.8 crore on improved valuations, as compared with the January-March quarter, and was recorded in the accounts.
It also reported unrealised gains of Rs 19.83 crore but has decided not to recognise the gains on the valuation date, which was June 30.
Production of two-wheelers were impacted due to a partial hit in supply of tyres. Supply from MRF, the Chennai-based company which is the chief tyre supplier to Bajaj, was hit following a labour strike. Bajaj is sourcing tyres from other companies, such as Falcon Tyre and TVS Tyres, to fill the void. http://www.business-standard.com/india/news/bajaj-net-zooms-67-to-rs-293-cr-in-first-quarter/364174/ http://www.financialexpress.com/news/bajaj-auto-q1-net-up-67-at-rs-293-crore/490585/ http://www.livemint.com/2009/07/16142209/Bajaj-Auto-net-up-67-on-highe.html http://www.thehindubusinessline.com/2009/07/17/stories/2009071752030200.htm http://www.indianexpress.com/news/bajaj-q1-net-profit-jumps-67.60-pct/490267/ http://www.hindu.com/2009/07/17/stories/2009071752921300.htm http://www.dailypioneer.com/189554/Snapshots.html http://in.biz.yahoo.com/090716/137/batw7n.html
BAJAJ AUTO: BETTING ON 100CC SPACE Shobhana Subramanian Business Standard (The Compass)
Mumbai: Bajaj Autos June quarter profit of Rs 293 crore was boosted by foreign exchange gains of Rs 100 crore. Better realisations from exports helped the top line stay flat at Rs 2,259 crore year-on-year despite volumes falling about 10 per cent. Sequentially, the revenue is up about 20 per cent.
After losing market share in the domestic motorcycle market for the last five quarters or so, the Pune-based firms share is up about 300 basis points to 25 per cent. Moreover, due to lower raw material prices, the operating profit margin for the June quarter has expanded to 16.6 per cent.
These benefits should continue in the current year and analysts believe that the operating margin for the year could be in the region of 16-17 per cent. Of course, margins would be driven by better volumes expected to go up by about 4-5 per cent and a better product mix. Bajaj should be able to cash in on the 9-10 per cent growth expected for the domestic motorcycle industry this year, most of which will be driven by pent-up demand, easier credit conditions and increased rural penetration.
Much will depend on the companys new launch in the 100 cc segment, a space that it is revisiting. This segment is dominated by Hero Honda, which has close to 90 per cent share. Besides, competition in executive and premium segments remains strong with players like Honda Motorcycles and Yamaha doing well. Having lost some of its franchises in the last couple of years, Bajaj Auto could find it difficult to win back its market share.
Nevertheless, revenues could rise 7-8 per to Rs 9,500 crore this year, over the Rs 8,810 crore posted in 2008-09. The stock has been an outperformer over the past few months but at the current price of Rs 1,150 trades at just about 14 times estimated 2009-10 earnings, while at Rs 1,538, Hero Honda, a much stronger player, trades at just over 15 times. Clearly, Bajaj should trade at a bigger discount to Hero Honda. http://www.business-standard.com/india/news/bajaj-auto-betting100cc-space/364111/
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| COMPONENTS Go To Top Shally Seth mint
Mumbai: The Automotive Component Manufacturers Association of India (Acma) plans to draft a new road map for the industry as domestic sales have risen more than it had projected in 2004 and the export market has shrunk.
The earlier document, drafted by management consulting firm McKinsey and Co., had underestimated domestic growth potential and overestimated export potential of the industry.
The export market has shrunk following the recent turmoil in the automotive industry, led by bankruptcy filing in the US by Chrysler Llc. and General Motors Corp.
The 2004 document envisioned that local auto component makers will have the potential to grow revenues to $33-40 billion (Rs1.61-1.95 trillion) by 2015. This included $20-25 billion of exports and $13-15 billion local sales, and indirect exports where auto ancillaries are sold to a local trading house, which in turn exports them.
However, in the year that ended on 31 March, local firms have together grossed $14.4 billion in domestic sales. Exports, however, have been lagging way behind the target of $3.6 billion.
The document said that to reach the potential of $33-40 billion revenues by 2015, the industry will need to invest around $15 billion in the next 10 years. Acma executive director Vishnu Mathur said in five years since 2003-04, the industry has invested Rs1.35 trillion. Of this, an estimated Rs32,000 crore was invested in 2008-09 alone. Mathur attributed the fatster growth in revenues to launches of many cars made in India. Unlike foreign car models, which take time to reach a requisite level of localization, locally manufactured cars like a Indica, Nano or a Mahindra Xylo help the component industry grow significantly, he said.
The new study will be completed by December. Consultancies such as Deloitte Consulting Llp., PricewaterhouseCoopers, Ernst and Young and McKinsey, among others, are in the fray for the mandate to draft the study, which will lay down a road map for the industry till 2020.
According to Ramesh Mangaleswaran, a director at McKinsey who was involved in the earlier study, a lot of things have changed since the document was prepared. Between the time of the report and now, the Indian economy grew much faster than what people had expected, he said.
The industry had expected the growth to be 6.5-7%, but the actual growth has been 8.5-9%, he added.
The earlier vision document, according to him, primarily aimed at characterizing the opportunity and the potential for the industry. We were not presenting a forecast because we are not in the business of forecasting. It presented the potential of what was possible, Mangaleswaran said.
Jayant Dawar, vice-president of Acma, said the study was based on some reference points or indicators such as the currency movement, GDP growth, etc., and all of them have changed significantly.
While turnover in the domestic industry have gone beyond what was expected, exports have lagged. No one had expected drastic downward movement in demand of vehicles in the US and Europe, Dawar said.
According to Deep Kapuria, chairman of Gurgaon-based Hi-tech Gears Ltd, and head of the steering committee at Acma that is taking a relook at the document, factors such as shift in technology, energy security dictating the agenda of most of the worlds economies, and fragmentation have altered the landscape of the auto industry. We are revisiting it late in the day, he said.
The new document will be more dynamic in nature and be reviewed on an annual basis, Kapuria added. V.G. Ramakrishnan, an analyst at Frost and Sullivan, a business research firm, said while its critical for the industry to have a vision with a 10-year horizon, its equally important to pay attention on an industry-academia collaboration as part of that vision. This will help it move beyond application engineering. http://www.livemint.com/2009/07/16223343/Auto-parts-companies-to-take-a.html?h=A4
MAGNA INTERNATIONAL MULLS MULTI-PRODUCT UNIT IN INDIA Chanchal Pal Chauhan
New Delhi: Magna International, the worlds largest contract manufacturer of cars, plans to set up an integrated manufacturing facility in India to function as a mother plant for all business divisions, a company executive said. We are evaluating the possibility of producing multiple products from a single plant in India, said Frank OBrien, executive vice-president (Asia Pacific Region) of Canada-based Magna International. The company, which reported revenues of $23.7 billion in 2008, builds cars like BMW X3, Mercedes Benz E Class, Aston Martin Rapide and Jeep Grand Cherokee on contract and also makes auto parts. It already has eight business divisions in India including manufacturing joint ventures with component makers Lumax, Amtek Auto and Rico Auto and full-fledged engineering centres to design and develop cars and ancillary products. All its manufacturing facilities in India are joint ventures. An integrated facility will help us leverage the overheads costs, Mr OBrien said. The facility would develop components and automotive designs for Magnas customers. However, such a facility would be fully dependent on the needs and requirements of our customers, he added. In the longterm, Magna could be manufacturing cars on contract for various premium carmakers eyeing the Indian market, a person who has knowledge of the developments said on condition of anonymity. Top-end carmakers like BMW, Porsche that import their vehicles to India and others like Aston Martin, Peugeot and Chrysler that eye the Indian market could use Magnas proposed unit to increase exposure in the worlds second fastest growing car market after China. Auto sales have picked up in India after a slump in late last year following a stimulus package from the government in December and overall recovery in the economy. The western markets, on the contrary, are still reeling under the global economic downturn. Mr OBrien refused to confirm any contract manufacturing plan, but said, By 2011, we expect over 11% of our business turnover to be based outside of our traditional markets North America and Western Europe, compared to just 1% ten years ago. The group has decided to focus more on India, China and Brazil as revenues from its traditional markets has been dropping. Over the past five years, it acquired more than 60 facilities in emerging markets and at present a quarter of its manufacturing facilities and employees are based in these markets. The figure is expected to cross 30% in the next few years. It has not ruled out acquisitions in the component space in India. Magna, which contract manufactures for Aston Martin, Porsche, Peugeot, BMW, Volkswagen and Fiat at its plant in Austria, is also the front-runner to acquire German car brand Opel, put on the block by troubled Amercian carmaker GM. Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved"
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| JK TYRES NET DOUBLES, TO EXPAND TRUCK RADIALS CAPACITY The Hindu Business Line See similar story in: The Financial Express
New Delhi: J K Tyres has doubled its net profit for the quarter ended June 2009 with a change in product and market mix, cost- cutting measures and lower raw material expenditure.
The company on Thursday announced a profit after tax of Rs 40 crore during the quarter against Rs 20.24 crore in the same period the previous year.
Net sales rose to Rs 897.67 crore, an increase of 5.7 per cent from Rs 849.06 crore in the corresponding quarter last fiscal. The growth in net sales was from an improvement in vehicle sales, both of car and commercial vehicles and a demand from the replacement market.
We changed our product and market mix of tyres by selling an increasing number of truck radials and premium tyres in different segments, said Dr Raghupati Singhania, Vice-Chairman & Managing Director..
The company has a 55 per cent market share in the truck radials including imported tyres. The share of truck radials in the overall commercial vehicle tyres is 9 per cent, which translates into a monthly volume of 65,000-70,000 units. The company intends to expand the capacity of its truck radials to 8 lakh tyres annually at an investment of Rs 315 crore. He said that the company had begun rolling out J K Tyre and Vikrant branded tyres from the plant of its newly acquired Mexican company Tornel. These tyres will be exported to Central and South America.
In the first six months we have generated sales of Rs 400 crore and a profit of Rs 40 crore. Capacity utilisation is nearly 65 per cent, said Dr Singhania. http://www.thehindubusinessline.com/2009/07/17/stories/2009071752000200.htm http://www.financialexpress.com/news/bajaj-holdings-net-rises-7fold-jk-tyre-profit-up-101/490607/
RE-PLANTATION SUBSIDY CRUNCH TO REDUCE RUBBER The Financial Express
Rubber production should be steadily increased to meet the growing demand in the country. As a prelude to this, area under new plantation has to be developed. Old and or less productive areas have to be identified for re-plantation, he said. The Centre, as of now, extends Rs 19,500 per ha, but according to a case study conducted by the association, the actual requirement is Rs 1,10,000 per ha, he added. The amount will cover only the input cost and not make up for the loss the farmers will suffer in the next five-six years from production fall, Radhakrishnan said.
A study conducted by rubber expert S Sivakumaran of Greenyeild Berhad, Malaysia, forecasts that for the 15-year period of 2005-2020, about 74,000 ha of land would be freshly planted or re-planted in India. During the same period due to economic reasons, 66,400 hectare will be discarded from rubber farming. Area under rubber production in India is likely to remain stable in the long run, as new planting area would hardly compensate for area discarded, says Sivakumaran. The concerns of the rubber sector are uneconomic land holdings, dependence on a single clone and limitations of the non-traditional areas. The traditional area of rubber farming in Kerala, accounts for 92% of natural rubber production and experts feel that it is saturated.
The association is also concerned on the unabated import of Chinese tyres into the nation. Tyre imports from China, often using unfair means, are seen increasingly capturing the replacement market. The imports are seen growing leaps and bounds and now account for almost 12-15% of the replacement market. The Chinese tyres have displaced almost 35,000 tonne of rubber from the market last year. Chinese tyre import ban would mean an additional demand of nearly 35, 000-40,000 tonne, Radhakrishnan said. http://www.financialexpress.com/news/replantation-subsidy-crunch-to-reduce-rubber/490572/
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| FINANCE & INSURANCE Go To Top The Financial Express
Bajaj Auto Finance on Wednesday reported a five-fold jump in its net profit to Rs 15.21 crore during the quarter ended June 30. The company had clocked a net of Rs 3.01 crore during the June quarter a year earlier, it said in a filing to the BSE. This fuelled a surge of 20% in its share prices on the BSE.
The total income of the auto financing firm rose to Rs 189.56 crore during the quarter from Rs 127.88 crore in the year-ago period. http://www.financialexpress.com/news/pfc-june-quarter-net-profit-up-87-at-rs-555-crore/489957/
ADD-ONS OKAYED, CAR COVERS GET MORE COMPREHENSIVE Sachidanand P Daily News & Analysis
Mumbai: Until recently, the motor insurance sector has seen fairly uniform product offerings. With the recent decision by Irda, the insurance regulator, permitting new add-on covers, India will see a paradigm shift in the way motor insurance is done. What it means for the common man is that while the main policy terms and conditions remain unaltered, he now has a choice to have added covers by paying additional premium. It might be pertinent for customers to make note of some of the kind of covers, which are offered as add-ons.
The most important one from a common motor owner's perspective is what he does when his car meets with an accident and the vehicle is garaged. In such a situation, the insurance company can reimburse the additional expenses which he/she would incur for hiring a vehicle till the damaged car is repaired and roadworthy.
Another major irritant for most vehicle owners is the depreciation in value of the vehicle. Now, a customer can opt for a nil depreciation cover, where depreciation is not applied on parts replaced owing to an accident. A word of caution is that these are generally offered to vehicles that are fairly new. Interestingly, if one were to lose a laptop or similar personal belongings in an accident, there is a cover available that makes the insurance company compensate for the loss incurred.
Most newer cars come with keys whose replacements are generally done with the help of the manufacturer, thus driving up the cost of getting them duplicated. Through an add-on cover, insurance companies will bear the cost of getting a set of duplicate keys. All additional covers come at a price and one needs to examine the details of coverage provided, as there are conditions imposed and which need to be fulfiled, to avail these add-on benefits.
In line with global practices, India will see more and more underwriting being done in motor insurance.
The price of vehicle insurance will depend on factors such as the colour of the car, age of the driver, the way it is parked, whether the person is married and has children, etc. The colour of the car will impact premium as a red colour car owner would be more flamboyant in his driving style. If the driver is young, the driving skills would not be as good as an older person with more experience.
If a vehicle has a covered parking, the probability of loss is lower than a car parked in the open. Similarly, it is perceived that a married person is more careful and when he has a child, he becomes all the more careful.
In brief, we are set to see insurance companies underwriting risks in a more scientific manner. http://www.dnaindia.com/money/report_add-ons-okayed-car-covers-get-more-
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| OIL, LUBRICANTS & ALTERNATIVE FUELS Go To Top
See this story in: The Times of India
Singapore: Oil prices were up in Asian trade after a massive rally in US stocks stoked hopes of an early rebound for the global economy, analysts said. http://timesofindia.indiatimes.com/NEWS-Business-International-Business-Oil-prices-rise-in-Asian-trade/articleshow/4783203.cms
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| US JOBLESS CLAIMS DROP BUT CLOUDED BY AUTO SHUTDOWNS AP See this story in: The Hindu Business Line
Washington: The number of new claims for unemployment benefits in the United States tumbled last week, but economists said the drop doesn't point to a rebounding economy.
The U.S. Labour Department said Thursday that new applications for benefits slipped by a seasonally adjusted 47,000 to 522,000, the lowest level since early January. Economists had been expecting a rise to around 575,000.
The latest figures are still far above the 325,000 that economist consider to be consistent with a normal, healthy economy. New benefits claims haven't been below 488,000 this year.
Shutdowns in the auto sector complicated the claims picture last week, a Labour Department analyst said.
The department's seasonal-adjustment process for the data anticipates auto plant shutdowns in the summer months and a corresponding rise in new claims for unemployment insurance. But that didn't happen, as many plants had already shut down after GM and Chrysler sought bankruptcy protection, which pushed down seasonally-adjusted claims.
Unadjusted new claims actually rose last week by 86,389, boosting the total to 667,534.
"Seasonal adjust problems are wreaking havoc with the layoffs data," said Richard Yamarone, an economist at Argus Research Corp., adding that the problems are expected to persist for another few weeks.
The adjustment issue also showed up in continuing claims for benefits. Seasonally adjusted continuing claims fell by 642,000 to 6.27 million.
The current recession hit the U.S. in December 2007, making it the longest on record since World War II. Since the recession started, roughly 6.5 million U.S. jobs have been lost.
Earlier this week, the U.S. Federal Reserve predicted the unemployment rate would rise above 10 per cent this year. The jobless rate stood at a 26-year high of 9.5 per cent in June.
PORSCHE SET TO ACCEPT VW PLAN FOR MERGER Reuters See this story in: The Economic Times
Frankfurt: The owners of indebted automotive group Porsche have agreed in principle to accept Volkswagens plan for a merger but the deal awaits final approval, German newspapers reported on Thursday. The idea is for Volkswagen to acquire just under half of the Porsche groups healthy Porsche AG sports car business, a concept pushed for months by VW chairman Ferdinand Piech, the Financial Times Deutschland and Die Welt reported. Europes biggest carmaker would eventually take over all of Porsche AG, adding a 10th brand to its lineup, according to the reports. A Porsche spokesman said he was unaware of any such agreement by members of the Porsche and Piech families, who control all the voting rights in Porsche SE. VW had no official comment. The end game in thorny merger talks between Porsche and Volkswagen looms on July 23 when the carmakers supervisory boards meet separately in Porsches home town of Stuttgart. The Porsche and Piech families have been at loggerheads for months over how to resolve Porsches debt woes and the role Volkswagen would play in the whole deal. Porsche had to abandon plans to take full control of its much larger peer as its debt mounted just as global car markets collapsed. That left Porsche with a 51% stake in VW. It has been in talks with Qatar about selling a stake or a package of options that control 20% of VW shares.
HARLEY-DAVIDSON SLASHES 1,000 JOBS AS PROFITS SKID Agencies See this story in: The Economic Times
Washington: US motorcycle maker Harley-Davidson said Thursday it would cut 1,000 more jobs this year after a devastating second quarter as the global recession slashed sales. http://economictimes.indiatimes.com/International-Business/Harley-Davidson-slashes-1000-jobs/articleshow/4786396.cms
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ECONOMY & FINANCE Go To Top The Hindu Business Line
Mumbai: The import cover of Indias foreign exchange reserves was down to 10.3 months as at March-end 2009 as against 14.4 months at March-end 2008, according to the Reserve Bank of Indias latest Report on Management of Foreign Exchange Reserves. Adequacy of forex reserves is an important parameter in gauging its ability to absorb external shocks.
The import cover has come down in sync with forex reserves declining by $57.738 billion in FY2008-09 to $252 billion as at March-end 2009. In the previous year, the reserves had jumped by $110.544 billion to $286 billion.
A major portion of the decline (65.2 per cent) in reserves in FY2009 is attributed to valuation loss i.e. movement of the US dollar against other currencies in which foreign currency assets are held.
Apart from the current account deficit, the outflows under foreign institutional investors, short-term trade credit to India and banking capital were the other major sources contributing to the decline in forex reserves during FY2009.
The ratio of short-term debt to the forex reserves increased to 19.6 per cent as at March-end 2009 from 15.2 per cent the previous year. Short-term debt includes suppliers credit up to 180 days, FII investments in Government of India Treasury Bills and other instruments, external debt liabilities of the banking system, and investments in Government Securities by foreign central banks and international institutions.
The ratio of volatile capital flows (defined to include cumulative portfolio inflows and short-term debt) to the reserves increased to 51.1 per cent as at March-end 2009 from 45.4 per cent earlier.
The RBI holds about 357 tonnes of gold forming about 3.8 per cent of the total forex reserves in value terms as on March-end 2009. Of these, 65 tonnes are being held abroad since 1991 in deposits/ safe custody with the Bank of England and the Board for International Settlements.
The deployment pattern of foreign currency assets, which are invested in multi-currency and multi-asset portfolios, shows that in FY2009 investment in securities was up by $23.505 billion to $134.792 billion while deposits with other central banks, BIS & IMF was down by $58.681 billion to $101.906 billion. Deposits with foreign commercial banks/ funds placed with external asset managers decline by $698 million to $4.728 billion.
Primary objective According to the RBI, the primary objective of reserve management for most countries is preservation of the long-term value of the reserves in terms of purchasing power and the need to minimise risk and volatility in returns and India was no exception in this regard. While safety and liquidity constitute the twin objectives of reserve management in India, return optimisation becomes an embedded strategy within this framework, the Report said. http://www.thehindubusinessline.com/2009/07/17/stories/2009071751100600.htm
SENSEX ENDS FLAT AMIDST HIGH VOLATILITY PTI See this story in: The Hindu Business Line
Mumbai: The Bombay Stock Exchange 30-share bellwether ended flat on Thursday after high volatility as investors booked profits in the last 30 minutes. The market alternatively moved in positive and negative terrain throughout and fell sharply at the fag end even as inflation rose marginally to minus 1.21 per cent and European markets slipped in early trade after a three-day surge.
Fluctuating in a range of 14,493.10 and 14,169.58, the BSE barometer ended the day at 14,250.25, showing a fractional downside variation from its previous close. Initially, the market hit an intra-day high on the back of firm Asian cues and positive FII activity. Asian indices ended the day higher by about 0.5 per cent to 1.0 per cent on encouraging US manufacturing data.
Foreign institutional investors turned net buyers after their massive pull-out in the initial two weeks of July. They bought shares worth Rs 342.69 crore on July 14 and 15, as per provisional data on the NSE. Smallcap and midcap stocks, however, closed in the green with the respective indices gaining 0.39 per cent and 0.24 per cent. Brokers, however, said the market is still bullish and expected to surge on the flow of corporate earnings.
Infosys Technologies and HDFC Bank so far have announced encouraging first-quarter results. http://www.thehindubusinessline.com/blnus/05161901.htm
INFLATION REMAINS IN NEGATIVE TERRITORY The Hindu Business Line
New Delhi: Inflation continues to be in the negative territory at -1.21 per cent for the week ended July 4 as compared with -1.55 per cent for the previous week ended June 27. In the corresponding week of 2008, inflation had stood at 12.19 per cent. The Wholesale Price Index, however, rose by 0.7 per cent for the same period to 236.4 from 234.7 in the previous week.
The minor increase in inflation rate is because of the recent hike in fuel prices. The prices of petrol and diesel were raised by Rs 4 and Rs 2 from July 1. Moreover, naphtha prices rose by 15 per cent, furnace oil by 11 per cent, besides a 2 per cent rise in the price of bitumen.
The index for primary articles remained unchanged at the previous weeks level of 258.5. Prices of food articles declined 0.2 per cent, due to lower prices of seafood, fruits and vegetables. Prices for non-food articles rose by 0.3 per cent to 237.7. This was mainly due to higher prices of gingelly seeds and cotton seeds.
Manufactured products, which account for a major share in the inflation index, rose 0.2 per cent to 206.1 from 205.7 in the previous week. Manufactured food products, rubber and plastic products both rose by 0.5 per cent, while tobacco and tobacco products rose by 0.9 per cent.
They were followed by transport equipment, which rose by 0.3 per cent and chemicals and paper products, which rose by 0.1 per cent and 0.05 per cent respectively. http://www.thehindubusinessline.com/2009/07/17/stories/2009071751831000.htm
Last Financial closing
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Thursday, July 16, 2009
Indian Auto Industry Update July 17, 2009
Subscribe to:
Post Comments (Atom)
Subscribe To
Posts
Comments
No comments:
Post a Comment